China’s industrial output rises in June, beats market estimates

Industrial production in China strengthened in June, beating market estimates, along with the country’s upbeat gross domestic product data that carves out a positive outlook for the Chinese economy in the near term.

Industrial production grew 6.2 percent year-on-year in June, from a 6 percent pace in May, and against the median forecasts among economists that growth would moderate to 5.9 percent, data released by the National Bureau of Statistics showed Friday. The value-added industrial output stands to represent a rough proxy for economic growth.

Moreover, industrial output rose 0.47 percent on a monthly basis in June, compared to 0.45 percent rise in May. However, the construction activity indicator failed to match the median forecast by economists for a gain of 9.3 percent.

Of late, the gross domestic product that beat market expectations, has also injected hopes into the economy, buoyed by stimulus measures from the government and the central bank helped shore up demand. The second quarter GDP growth rose 1.8 percent q/q, against expectation of 1.6 percent, from 1.1 percent in the last quarter.

Meanwhile, China’s retail sales grew 10.6 percent in June y/y, compared to 10.0 percent in May and a median forecast for a 9.9 percent rise in June.